House Bill 136

Chair's Name: Wendell Willard

Committee: Judiciary Civil

House Sponsor: Mike Coan

 HB 136 deals with agreements which will be considered unenforceable because they are against public policy.  This bill extends this policy to construction-related insurance contract provisions which indemnify a party from damages caused by their sole negligence.

The committee substitute received a Do Pass recommendation from the Judiciary Civil Committee and comes to the House Floor under the Open Rule. 

Chairman Willard's opinion of this legislation:

WHAT PROBLEM/OPPORTUNITY DOES THIS LEGISLATION ADDRESS?

HB136 addresses a loophole in O.C.G.A. § 13-8-2, related to contracts contravening public policy, by including insurance contracts which purports to provide for such indemnification or holding harmless of a promisee. 

WHAT IS THE DRIVING FORCE BEHIND THIS LEGISLATION?

Contractors and insurance agents want to eliminate this loophole.

THIS LEGISLATION:

The bill will reduce litigation between co-defendants in construction liability cases, therefore, reducing costs to our courts.

Senate Changes:

The Senate added an amendment that keeps counties/municipalities from charging insurance companies any more fees or taxes than now allowed under current law. Representative Coan will likely offer an amendment to the Senate amendment and then move to agree as amended by the House.